defend its people. >> pelley: reports from allen pizzey, charlie d'agata and wyatt andrews. >> pelley: reports from allen pizzey, charlie d'agata and wyatt andrews. elaine quijano on a call by doctors to make the pill available without a prescription. we'll talk to one of america's fiscal cliff. >> the big nut is going to have to be medicare and medicaid. >> pelley: and jim axelrod with a woman on a mission to recover memories sandy washed away. >> the storm can take our houses and possession bus she left us these photos. captioning sponsored by cbs this is the "cbs evening news" with scott pelley. >> pelley: good evening. at the end of the most violent day yet in the battle between israel and the hamas government in gaza, secretary of state hillary clinton arrived in jerusalem to try to broker a cease-fire.

but late today things looked frosty between the secretary and israeli prime minister benjamin netanyahu. faces were long and comments were short. she had just flown ten hours, leaving president obama behind on a tour of cambodia throughout this day there were rumors of peace but israel unleashed a ferocious bombardment of gaza from air and sea. the palestinians and gaza fired back. since this started last week, 133 palestinians have been killed in 1,500 israeli air strikes. five israelis have died after more than one thousand rockets rained down from gaza. we have correspondents on both sides of the line, first charlie d'agata in gaza. >> reporter: city skyline was filled with smoke as israeli tanks fired shells followed by air strikes. when we drove to one neighborhood to take a closer look, another strike came in.

the bomb landed less than a hundred yards from us. residents scrambled for safety. our next stop was the hospital. there had been a number of explosions here in gaza this afternoon with casualties brought here to the hospital. we've heard reports that at least ten people have been killed in the last hour alone. they are all civilian, we're told, that's caused anger and outrage here in gaza city. hamas kept up its offensive too, firing more missiles into israel. and in the streets, militants shot dead six palestinians suspected of collaborating with israel one body was dragged through the street as people cheered. others packed up and fled as israeli warplanes dropped leaflets warning gazans to get out. hamas urged residents to ignore the warnings calling

it psychological warfare. human rights activists said that despite the mounting casualties, hamas still has widespread support. >> i think if the war stops today it will be victory for hamas. >> reporter: even if stopped today you would see it as a victory? >> yes. >> reporter: in what way? >> this is the worst war israel lost. they are big losers. their image is tarnished. we're not victims any more for the first time ever. >> reporter: yousef graham is a farmer who told us he was wounded in an israeli air strike now he said he supports hamas. his nephew told us israelis don't care if they hit civilians. that growing anger is a problem that could outlast any truce that diplomats might patch together.

>> pelley: charlie d'agata is in gaza city tonight. charlie, simply put, what is it like to be a citizen of gaza today? >> reporter: quite frankly, scott, it's been a terrifying day and into the evening. the streets are empty and there's good reason: israeli warships have been pounding gaza for most of the evening, dozens of rounds have been fire into the gaza strip. israeli tanks have opened fire in the south. we've had fighter jets flying overhead on these bombing runs. there have been huge explosions here. some in residential neighborhoods that we passed on the way here. at the same time, we have seen and heard hamas firing rockets back into israel. so it's been so unpredictable and there has definitely been an uptick in the violence and fighting here in gaza. >> pelley: charlie d'agata in gaza city. thank you, charlie. now we want to remind you what gaza is and how it came to be. the gaza strip was laid out in 1949 after the war that created israel. it's home to palestinians displaced in that war. 25 miles long and roughly ten

miles wide, gaza population is 1.7 million. israel occupied it until 2005. a year later the hamas political party won the election there. the u.s. says the hamas military wing is a terrorist organization. all of this started when israel retaliated after weeks of rocket attacks from gaza. secretary of state clinton will meet tomorrow with palestinian representatives and then move on to talks in egypt but she is in jerusalem tonight and so is allen pizzey. >> reporter: the late-night press conference in the office of the israeli prime minister was brief and blunt. benjamin netanyahu made it clear he was in no hurry to sign on the dotted line and signaled that a ground war was still possible. >> now if there's a possibility of achieving a long-term solution to this problem through diplomatic means we'd prefer that. but if not i'm sure you understand that israel will have to take whatever action is

necessary to defend its people. >> reporter: secretary clinton made the point that both sides have suffered casualties and added a thinly veiled warning that a cease-fire was essential. >> our hearts break for the loss of every civilian, israeli and palestinian and for all those who have been wounded or who are living in fear and danger. i know today was a difficult day and i offer my deepest condolences to the loved ones of those who were lost and injured. >> reporter: formalities over, the secretary and prime minister headed into the back room to get down to the business of hammering out a deal that everyone thought had already been done. >> pelley: thanks, allen. every american president gets pulled into this dispute sooner or later. wyatt andrews is covering the white house for us tonight. wyatt? >> reporter: scott, the president worked the telephones personally today from his hotel room in cambodia in what has now become a high-stakes administration effort to broker a truce in gaza.

the president called israel's prime minister netanyahu and three times called egypt's new president mohamed morsi to ask what it would take to stop the violence. mr. obama then sent secretary of state clinton to the middle east. the violence in gaza has forced the administration back into the middleman role it seemed to abandon last year when two years of work by middle east special envoy george mitchell came up empty. but now under the threat of war the u.s. sees little choice except to step in. secretary clinton will ask the palestinians to stop the rocket attacks and ask israel to offer more hope of a longer term peace agreement. >> the goal must be a durable outcome that promotes regional stability and advances the security and legitimate aspirations of the israelis and palestinians alike. >> reporter: the crucial player now is president morsi of egypt whose islamist government openly

supports hamas because the u.s. and israel see hamas as a terrorist organization, morsi is essentially the go-between. this is new ground for both the president and the secretary of state. regional and popular support for hamas and the palestinians has never been more powerful. the threat of war is real, and scott, the white house's attempt to stay low profile in the middle east is over. >> pelley: thank you. now moving on to america's u.n. ambassador susan rice, she is one of president obama's top candidates to be the next secretary of state but some republican senators have vowed to block her nomination they accuse rice of being misleading about the september attack on the u.s. consulate in benghazi, libya. as you recall, ambassador christopher stevens and three other americans were killed there. our state department correspondent margaret brennan has new information on why rice said what she said. margaret? >> reporter: good evening,

scott. a government official tells us that references to al qaeda and terrorism were cut from the talking points by the intelligence community, not the white house or the state department. the edits came from the office of the director of national intelligence-- d.n.i.-- with the agreement of the c.i.a. and the f.b.i. u.n. ambassador susan rice relied on those talking points during an appearance on "face the nation" on september 16 in which she called the benghazi attacks a spontaneous demonstration by extremists not an act of terrorism. >> we do not have information at present that leads us to conclude that this was premeditated or preplanned. >> reporter: republicans have accused her of intentionally making misleading statements, suggesting they tone down any references to terrorism for political reasons ahead of the presidential election. c.i.a. director david petraeus told congress last week that an early draft of the talking points did include a link between al qaeda and the attack but the official told us someone

in the office of the d.n.i. crossed it out because the links were deemed too tenuous to make public at that point. the head of d.n.i. is james clapper, an obama appointee. a source told us clapper reviewed the points but there's no indication he personally made the edits. clapper may be asked to explain. today the house intelligence committee released a statement saying this version of events differs from earlier accounts and they want answers, scott. >> pelley: margaret, thank you. the pill will be available without a prescription if doctors have their way. and northwest rain isn't news-- until it falls like this when the "cbs evening news" continues. but i'm still stubbed up. [ male announcer ] truth is, nyquil doesn't unstuff your nose. what? [ male announcer ] alka-seltzer plus liquid gels speeds relief to your worst cold symptoms plus has a decongestant for your stuffy nose. thanks. that's the cold truth!

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if you're still having difficulty breathing, ask your doctor if including advair could help improve your lung function. get your first full prescription free and save on refills at advaircopd.com. >> pelley: birth control pills can be purchased only with a prescription. but today the american college of obstetricians and gynecologists said that the pill should be available over the counter. elaine quijano tells us why. >> you've decided on the pill? >> reporter: in the 1960s when birth control pills were first approved, only married women could get a prescription. now, nearly 11 million women in the u.s. are on the pill. gynecologists dan grossman's research led to today's recommendation that oral contraceptives be made available over the counter to reduce the risk of unwanted pregnancies. >> we have over 50 years of experience with oral

contraceptives now and it's one of the best studied medications that's around so we know it's incredibly safe. >> reporter: about half of all pregnancies are unintended-- a rate that has not changed in 20 years. nearly five million women considered at-risk for an unintended pregnancy do not use any kind of birth control. >> women who aren't currently use any type of contraception or who are using a less-effective method might start using the pill. and also it could make the pill easier to get for women who are already taking it and prevent gaps in use. >> reporter: ann mahan is a >> reporter: ann mahan is a registered nurse and director of the student health clinic at farleigh dickinson health clinic in new jersey. she has concerns about the recommendation. >> i can see chaos from birth control pills being over the counter. >> reporter: she's worried a lack of oversight could lead to misuse or increase the risk for side effects such as blood clots.

>> we need to have that contact with our patients and we need to be able to monitor their health and the only way to do that is to have birth control pills stay a prescriptive item. >> reporter: but the report cites evidence that women can effectively screen themselves for risk factors such as smoking and hypertension. and when the pill was available over the counter, women were just as likely to use it correctly as those who received a prescription. the food and drug administration is already looking at ways to increase access to certain drugs including oral contraceptives. scott, among the possibilities under discussion: a one-time prescription or even making drugs available through automated screenings at electronic kiosks. >> pelley: thanks, elaine. england has had queens and a woman prime minister but the church of england will have no female bishops. the church laity voted no on that today. the church of england does have

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are you in good hands? ♪ are you in good hands? clusters of pustules, pimples. i had this shingle rash right next to my spine. the soreness was excruciating. it was impossible to even think about dancing. when you're dancing, your partner is holding you. so, his hand would have been right in the spot that i had the shingles. no tango. no rhumba. you can't be touched. for more of the inside story, visit shinglesinfo.com >> pelley: housing has been the biggest drag >> pelley: housing has been the biggest drag on the economy, but there are a lot of signs lately that the market is coming back. the government reported today builders were putting up homes last month at the fastest pace in four years. 42% faster than a year ago. certainly good news-- but we

would still likely fall back into recession if the white house and congress don't reach a budget deal by the end of the year. if they fail, there will be huge automatic tax increases and spending cuts. dave cote knows what's at stake. he's the c.e.o. of honeywell and a member of the simpson-bowles commission which came up with the budget plan. last week, president obama sought his advice. we asked cote to put america's debt into perspective by comparing it to the size of the overall economy. >> our debt is higher as a percent of g.d.p. today than it has been at any time in our history since the revolutionary war with the exception of the end of world war ii when we had a very good reason to be doing that. so we have to do something. >> pelley: what is the size of the problem? >> our net debt today if you include the impact of borrowing from social security is about $11 trillion today and over the next ten years grows to about $20 trillion.

that means our annual interest bill would be a trillion dollars a year. it's ridiculous! >> pelley: dave cote knows about fixing finances. he pulled honeywell out of a slump. it's one of america's largest industrial conglomerates. 130,000 employees make products ranging from aircraft parts to home thermostats. given the uncertainty of what's going to happen next how much effect does that have on your planning at honeywell? >> i wish i made up this phrase because it's so good. it's capital is a coward. when it comes to hiring, you know, they retire, they leave for a variety of reasons and i'm not going to back fill those jobs. i won't hire for them. when i look at capital expenditures and decide should i build that new plant or modify it, upgrade it? should i invest in the this new product? you know, maybe i'll hold back a bit, wait and see what happens. and that's happening across industry right now. >> pelley: cote told us a deal

has to include big budget cuts and increases in tax revenue. the tax money, he said, could come from reducing deductions. >> we collect $2.2 trillion in taxes but we give away half of it in credits and deductions. >> pelley: the mortgage deduction for example... >> oh there are all kinds. >> pelley: ...charitable deductions. >> there were like 169 different ones used in, i don't know, 2008 or 2009, somewhere in there. >> pelley: but when republicans say "we will not allow tax rates to be increased" you say what? >> well, that's where you start to get into the-- i guess the word parsing that i said one of my other warnings from simpson- bowles is that i'm not a political savant. so some of this stuff i just don't quite get. but the fact is you need more revenue. >> pelley: when it comes to cutting the budget, where does that money come from? >> the big nut is going to have to be medicare/medicaid. and even though people don't want to talk about it... >> pelley: you're not a politician, are you? >> ( laughs )

no. you can't avoid the topic. especially with the baby boomer generation retiring. it will literally crush the system. >> pelley: cote told us if washington doesn't make a deal the nation will be condemned to 2% growth and 8% unemployment. there's rain in the forecast for the pacific northwest. not what oregon and washington need yesterday they got more than six inches. winds gusting over 100 miles an hour knocked down trees there. memories stolen by another storm are being recovered thanks to a woman you will meet when we come back. used androgel 1%, there's big news. presenting androgel 1.62%. both are used to treat men with low testosterone. androgel 1.62% is from the makers of the number one prescribed

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was one of 200 destroyed by sandy. >> i couldn't just sit around and go "woe me" because there was a lot of "woe me" stories. >> reporter: so instead, she's been walking up and down the beachfront. >> you have just a little bit of a person's face. >> reporter: finding small treasures amid the devastation. >> and that is another photo that's damaged. the storm can take our houses; they can take our possessions. but she left us these photos. >> reporter: she's gathered 5,000 pictures which she cleans and stores in 50-gallon tubs, snapshots of weddings, birthdays, even sonograms. they were valuable before the storm. they're priceless now. what is this? >> this is a baby album. >> reporter: oh, my. >> photos of the birth all the way through to the first photos that you take of your infant. >> reporter: collecting them is one thing. getting them back to their owners is something entirely different. >> and i was like, okay, now what do i do with them? oh, you know what? facebook, the power of social networking. >> reporter: we saw that power

at work as we wrapped up our interview. someone posted the identity of the album's owner on van houten's facebook page. >> she said, "they live on shore road. if someone can drop it off to them, thank you so much." >> reporter: someone's just said, we know who it is? >> yup. it's the baby album. >> reporter: five minutes later, the album was on its way back to the family. first the aunts. >> oh, my god. it is. it is. >> you don't know how much this is going to mean to him. >> thank you so much. i appreciate it. >> had to be returned. >> thank you. >> reporter: a few hours after that, it was back in the hands of the father, who lost everything in the storm. >> this is the first thing i have to start with again. this is my memories starting right here. >> reporter: so anytime you take a walk now, you're still finding stuff? >> yes, definitely still finding things. >> reporter: so far, van houten has returned 150 photos. you do understand that you are an angel of mercy here. >> everyone needs something to do. this is my "something to do." >> reporter: her "something to

do" is to help a hometown heal, offering the kind of assistance not even fema could provide. >> thank you so much. >> reporter: jim axelrod, cbs news, union beach, new jersey. >> and that's the "cbs evening news" for tonight. for all of us at cbs news all around the world, good night. >> your realtime captioner: linda marie macdonald good evening, i'm allen martin. >> i'm dana king. lavish meals, luxury travel, and a lot of lost receipts. all adding up to one big bill for taxpayers. and an official investigate into the bay area official at the center of spending. cbs 5 reporter len ramirez on what he had to say for himself today. >> reporter: as the president of the santa clara board of supervisors is responsible for spending millions of dollars of

the public's money, what has gotten him into trouble recently are questionable expenses that were placed on his county issued credit card. >> first of all, much has been written about in the past about my personal office's card usage. >> reporter: he spoke for the first time about allegations he wasted taxpayer dollars on lavish meals, booze and luxury upgrades for himself and his staff. but he didn't deny it and wasn't apologetic. instead, he went after the news media, which broke the story and called for his resignation. >> i don't want you to be distracted by the political lynching that you read today and continue to read about in the print media. i want you to understand that for 50 years, i have been nurtured and raised and lived in peace in this community. >> reporter: his colleagues on the board whose own expenses are now being more tightly controlled called on shar ra can what to